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Confusion or Merger of Rights
mainly discussed in Chapter 4 - Section 4 (Articles 1275-1277) in Title I of Book IV of the Civil Code of the Philippines. The confusion or merger of the rights is a mode of extinguishment of obligation wherein the characters/qualities of creditor and debtor are merged in the same person. An obligation is extinguished if the debtor also becomes the creditor since one cannot claim against himself. The obligation is deemed fulfilled and realized when there is confusion or merger of rights. Requisites of Confusion A confusion or merger of the rights of an obligation requires: *to apply only to the one same obligation; the obligation is not extinguished if the debtor acquires the rights from the creditor through another obligation *to take place between the principal debtor and the principal creditor; the principal obligation is extinguished along with the accessory obligation/s. *to be clear, definite, and complete; a right is completely transferred to one party. Such extinguishment may be: *in whole, if there is complete transfer and merger of rights to one party. *in part, if there is complete transfer and merger of some rights to one party, while there is still remaining obligation as other rights are not transferred. The acquisition of rights does not constitute a merger if: *if such rights are acquired by the guarantor from either the debtor or the creditor; this only extinguishes the accessory obligation (guaranty) but not the principal obligation. *if such rights are acquired by a third person from both the debtor and the creditor incompletely, lacking either debt or credit, or either real right or title. If the act which created the confusion is revoked, the obligation shall again be in effect in the same condition as it was before. Confusion in Real Obligation There can be confusion or merger in a real obligation to give or deliver a thing/property. There is confusion if real rights (usufruct, mortgage, pledge, etc) and ownership rights (title) are merged into one party, resulting to the extinguishment of the obligation. The merger is considered as 'consolidation of ownership' to the thing/property. This may be caused by: *transfer of the ownership right to the one who has an obligation that provides the real right. *transfer of the real right in an obligation to the one who has the ownership right. Confusion in Joint Obligation There can be no total confusion or merger in a joint obligation, wherein its prestation/s is divided among the different debtors and/or the demand for is divided among the different creditors. There is confusion in a joint obligation if one debtor becomes one of his creditor, or one creditor becomes one of his debtor. The confusion apply only to the part/share corresponding to the one creditor or the one debtor whom the two characters merged. This does not affect the other prestations and hence does not extinguish the joint obligation as a whole. Confusion in Solidary Obligation There can be confusion or merger in a solidary obligation, wherein the prestation/s is rendered by each one of the debtors, and/or its entire compliance is demanded by each one of the creditors. There is confusion in a solidary obligation if *one of the solidary debtors also becomes the sole creditor; he may then claim reimbursements from his co-debtors. *one of the solidary creditors also becomes the sole debtor; he may then do whatever may be useful to the other creditors, but not anything which may be prejudicial. The confusion apply to the entire solidary obligation which is extinguished as a whole Category:Obligations and Contracts Category:Extinguishment of Obligation